A city mayor has been arrested as part of an investigation into the infiltration of the 'ndrangheta organised crime clan of southern Italy in the north's business and political establishment.

Prosecutors on Tuesday accused Edoardo Mazza, mayor of Seregno near the northern city of Milan, of being in cahoots with a mafia-linked builder who allegedly got him votes in exchange for the rights to build a supermarket.

The arrest of Mr Mazza, elected in 2015 on the ticket of ex-premier Silvio Berlusconi's Forza Italia party, was announced as part of a multi-pronged investigation into the 'ndrangheta's infiltration in Lombardy, the economic engine of Italy.

In all, police issued 27 arrest warrants on Tuesday, many accused in the 'ndrangheta's cocaine trafficking operations and hailing from the mob's Calabrian hub in San Luca.

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